Heri Holdings Limited has received approval from the Competition Authority of Kenya (CAK) for its acquisition of 100 per cent shareholding of Nova Academies Tatu City Property Limited.

The private investment and management company, known for its involvement in the real estate sector, will now take over the commercial property assets of Nova Academies.

The Competition Authority of Kenya, in its announcement on Wednesday, stated that the regulatory body found no evidence to suggest that the transaction would have any adverse effects on competition in the commercial property market.

Moreover, the authority assured the public that there were no concerns of negative public interest stemming from the acquisition.

The focus of the acquisition lies in the assets of Nova Academies, specifically its buildings, land, and related infrastructure.

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Nova Academies itself will remain unaffected, with its regular operations continuing seamlessly across its seven schools.

In a statement, the competition authority emphasized, "The school shall continue to operate normally with no transfer of its programs, brand, and related assets such as students, teachers, and other employees."

The Competition Act dictates that any merger or takeover involving the acquisition of control over another business in the country necessitates approval from the CAK.

This could occur through various means, including the purchase or lease of shares, exchange of shares, or vertical integration.

Notably, merging parties with a combined turnover or assets exceeding Sh1 billion are obligated to seek approval from the regulatory body before completing the acquisition.

"The transaction between Heri Holdings and Nova Academies met this threshold for mandatory notification and full analysis as provided in the Competition (General) Rules, 2019," stated the CAK.

This regulatory approval marks a significant milestone for Heri Holdings, affirming its strategic move into the education sector's real estate domain and reinforcing its position as a key player in Kenya's investment landscape.